OTTAWA, ONTARIO — (Marketwired) — 06/12/13 — International Datacasting Corporation (“IDC”) (TSX: IDC), a global leader in digital content distribution solutions for the world-s premiere broadcasters, announced its financial results today for the first quarter ended April 30, 2013. All amounts in this release are in Canadian dollars unless otherwise stated.
Financial Highlights for the First Quarter:
(in thousands, except for gross margin (GM) and loss per share)
(1) The breakdow n of revenues is based on revised operating segments.
(2) Adjusted EBITDA is a non-GAAP financial measure. The reconciliation of Adjusted EBITDA to Net Loss is provided at the end of this release.
Total revenues for the first quarter of Fiscal 2014 were $5.4 million, a decrease of 45% or $4.3 million from the comparable prior period as a result of the completion of the first phase of the Direct-to-Home (DTH) Broadcasting project in Kenya with the Wananchi Group. Product revenues grew by 31% during the first quarter resulting in an improvement in gross margin to 50% vs 28% in Q1 FY-13.. The margin improvement was largely due to a change in business mix, driven by increased Products revenue at higher margins.
Operating Expenses were $2.8 million, a decrease from $2.9 million in the first quarter of the prior year. When excluding $0.2 million of restructuring charges included in the first quarter of prior year, operating expenses increased by 4% during the first quarter of Fiscal 2014. This was due mainly to the new product launch of the STAR Pro Audio Solution and LASER Targeted Ad Insertion Platform at the National Association of Broadcasters Show in April 2013, and due to fees associated with the recruitment of the new CEO and VP of Research and Development.
IDC earned a lower Adjusted EBITDA of $64 thousand during the current quarter due to higher operating expenses, compared to $159 thousand in the comparable prior period. IDC-s consolidated balance sheet improved during the current quarter, with working capital ratio of 3.4 to 1 and liquid assets of $7.2 million at April 30, 2013.
“IDC is actively changing its business model to focus on selling higher-margin products which contribute significantly to our customer-s business growth, and reducing our emphasis on one-time projects.” said Doug Lowther, President and CEO of IDC. “This is a significant change and will take time to fully implement, however in the future we believe that this strategy will allow us to scale the business more effectively. We continue to see significant market interest in our STAR Pro Audio Solution, LASER Targeted Ad Insertion Platform, and Digital Tattoo DTH Over IP Gateway for multi-dwelling units.”
For further information on IDC-s first quarter results, refer to the unaudited interim condensed consolidated financial statements and Management-s Discussion and Analysis that will be available on SEDAR () after the Toronto Stock Exchange closes on June 12, 2013.
Financial Summary and Conference Call
This announcement will be followed by a Management conference call at 8:30 a.m. ET on Thursday, June 13, 2013, to discuss the results, and to respond to questions from investors.
Mr. Doug Lowther, President and CEO of IDC, cordially invites all interested parties to participate in the conference call.
CONFERENCE CALL DETAILS:
WEBCAST: A live audio webcast of the conference call will be available at the following link: . This webcast will be archived here for 365 days. Please connect to the website at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be needed to access the webcast.
About International Datacasting Corporation:
International Datacasting Corporation (TSX: IDC) is a global leader in digital content distribution for the world-s premiere broadcasters in radio, television, data and digital cinema. IDC offers a broad portfolio of advanced solutions including the STAR Pro Audio Solution, LASER Targeted Ad Insertion Platform, and the Digital Tattoo DTH Over IP Gateway. IDC-s products and solutions are in demand for radio and television networks, targeted ad insertion, digital cinema, 3D live events, satellite news gathering, sports contribution, VOD, and IPTV. IDC is headquartered in Ottawa, Canada, with regional offices in Arnhem, the Netherlands and in San Diego, California. The company has installations in over 100 countries and service offices in Thailand and Singapore, and an international network of value-added partners and resellers. For more information visit: .
Forward-Looking Statements:
This press release contains certain information that may constitute “forward-looking information” and/or “forward-looking statements” within the meaning of applicable Canadian securities laws. All forward- looking information and forward-looking statements are necessarily based on a number of estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies. All statements other than statements which are reporting results as well as statements of historical fact are forward-looking statements that may involve a number of known and unknown risks, uncertainties and other factors; many of which are beyond the ability of IDC to control or predict.
Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan or “project” or the negative of these words or other variations on these words or comparable terminology. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that might cause actual results to differ materially include, but are not limited to: competitive developments; risks associated with IDC-s growth; expectations regarding new product initiatives and timing, including the STAR Pro Audio Solution, LASER Targeted Ad Insertion Platform and Digital Tattoo DTH Over IP Gateway; any difficulties with integrating acquired product lines into IDC-s business and/or manufacturing procedures; any difficulties or disputes with IDC-s subcontractors, contract manufacturers and suppliers; IDC-s dependence on the development and growth of the satellite services market; a lengthy and variable sales cycle for IDC-s products and services; IDC-s reliance on a small number of customers for a large percentage of its revenue; expectations with respect to the sufficiency of its financial resources and liquidity; regulatory risks and intellectual property infringement.
More detailed information about potential factors that could affect IDC-s financial and business results is included in the public documents IDC files from time to time with Canadian securities regulatory authorities and which are available on SEDAR at , including, without limitation, IDC-s MD & A for the year ended January 31, 2013, dated April 29, 2013.
Except as expressly required by applicable law, we undertake no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Forward- looking statements are provided to assist external stakeholders in understanding IDC-s expectations as at the date of this release and may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on such statements.
Contacts:
Rick Clements
Chief Financial Officer
International Datacasting Corporation
613-596-4120
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